Department of Business & Economic Development. Life Cycle Assistance. Capital Investment Investment Financing Group. Small Business MSBDFA. Incentives MEDAAF Sunny Day. Guaranties and Credit Enhancements MIDFA. Maryland Venture Fund.
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Life Cycle Assistance
The Challenge Investment Program (CIP)
Seed funding for start-up technology companies to cover some of the initial costs associated with bringing a product to market.
Focused on biotechnology, information technology, telecommunications, software, cyber security and advanced materials.
Grants of $50,000 to $100,000
Since 1994 – 174 investments = $11.6 million
The Enterprise Investment Program (EIP)
Direct equity investments in emerging high technology companies that have a patented or proprietary products, manufacturing processes and a marketing strategy in place.
Investments range from $150,000 to $500,000 leveraging a minimum 3:1 private sector match.
Maintain principal place of business in Maryland
Since 1994 – 107 ventures = $44 million
25 exits = $65 million return
Direct loans or guarantee of up to $2 million for working capital and equipment to begin, continue and complete contracts which receive the majority of their funding (51% or more) from any federal, state, or local government agency, or utility regulated by the Maryland Public Service Commission.
Conventional deficiency loan guarantee of up to 80% not to exceed $2 million or interest rate subsidy of up to 4%. Eligibility includes real estate, equipment, FF&E, and working capital.
Issuance of bid, performance, and payment bonds up to $5 million for contracts which receive the majority of their funds (51% or more) from any federal, state, or local government agencies or utilities regulated by the Maryland Public Service Commission. May also guarantee up to 90% of a surety’s bond.
Direct loans, loan guarantees, and equity investments of up to $2 million for business acquisitions, franchising, and developing technology-based companies. Investments are limited to 49% of the appraised valuation.
MD Economic Development Assistance Authority and Fund
Project must be in aPriority Funding Area.
1. Significant Strategic Economic Development
2. Local Economic Development Opportunities.
3. Direct Assistance to Local Jurisdictions or MEDCO.
4. Regional or Local Revolving Loan Funds.
5. Special Purpose Loans.
Real Estate--------------------------- Up to 25 years
Machinery & Equipment -------- Up to useful life of asset NTE 15 years
Furniture & Fixtures ------------- Up to useful life of asset NTE 15 years
Working Capital Line ------------- Renewed annually with a 3 year cap
Significant Economic Development Opportunities Continued
Investments (in conjunction with a loan or grant)
Local Economic Development Opportunities Continued
Economic Development Opportunities
Extraordinary economic development opportunities resulting in significant high wage employment and high capital investment by a prominent company.